what account currency to choose?

Hi

Regarding a forex trading account, I'd like to know what the "best practice" is for choosing one's account currency.

I assumed, living in the UK, that I should choose GBP. But now I'm not so sure anymore.

So many calculations, for example for direct rate pip values, are based on the USD. WOuld certainly make life easier if the account was in USD also, no?

Also, I have chosen Alpari UK for a broker - again assuming that based in the UK it would be best to go with a broker based here. But, is that correct? Should I also consider US based brokers for example? What considerations are involved in such a decision?

Any advice much appreciated!

I presume you know that retail forex `brokers` only allow you to withdraw in the same currency you deposit in. So unless you have bank account(s) denominated in USD or Euro the decision is already made for you. Be careful of sending funds across the Atlantic as fees will be deducted by correspondent banks, probably only $12-$15 per transfer, but this can become disproportionate for modest sized transfers.

gc1 said:

I presume you know that retail forex `brokers` only allow you to withdraw in the same currency you deposit in. So unless you have bank account(s) denominated in USD or Euro the decision is already made for you. Be careful of sending funds across the Atlantic as fees will be deducted by correspondent banks, probably only $12-$15 per transfer, but this can become disproportionate for modest sized transfers.

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That not true of InteractiveBrokers. You can withdraw in any currency.

dcraig1 said:

That not true of InteractiveBrokers. You can withdraw in any currency.

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Yes, but they are less "retail" than most others ($10,000 minimum initial deposit AFAIK).

Trade in usd

Hi,
I have been trading for 5 years now. I can assure you that the best currency to trade in is USD for the reasons you mentioned and others that you will learn with time. I know for a fact that you can deposit in USD through your UK credit card, however the credit card companies will charge you conversion fees.(find out from your provider how much). The same is true for wire transfers. Choosing a company thats local does have its advantages in that you can go there and meet with actual brokers and see where your money really is. On the other hand I feel that you should be more focused on your comfort level with the platform, the loading speed and features they can offer you. Customer service is important,especially for a beginner.

Hope I was helpful..
Good Luck!!!

Thank you all very much for your input so far!

I'm still a little confused though... sorry....

According to gc1:

retail forex `brokers` only allow you to withdraw in the same currency you deposit in. So unless you have bank account(s) denominated in USD or Euro the decision is already made for you.

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Alpari UK let me choose which currency my account is in. I understand from what you say that I can only withdraw in the same currency I deposit - GBP - and that suits me just fine. Seems though that my account could still be in USD? So, back to square one?

Be careful of sending funds across the Atlantic as fees will be deducted by correspondent banks, probably only $12-$15 per transfer, but this can become disproportionate for modest sized transfers.

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That makes good sense, thank you. So, does that mean having a forex account based in the US would "work" as well as one based here in the UK? Do I need to worry about lag?

According to TradeManiac:

I can assure you that the best currency to trade in is USD for the reasons you mentioned and others that you will learn with time.

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I am intrigued... Please, what other issues should I be considering?

Choosing a company thats local does have its advantages in that you can go there and meet with actual brokers

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Not really something I am too interested in. And I am only looking at brokers offering MetaTrader. Are there really no other issues (apart from the fees mentioned above) that affect trading with a broker based in the UK, vs one based in the US?

Thanks again!

cherusker said:

Hi

Regarding a forex trading account, I'd like to know what the "best practice" is for choosing one's account currency.

I assumed, living in the UK, that I should choose GBP. But now I'm not so sure anymore.

So many calculations, for example for direct rate pip values, are based on the USD. WOuld certainly make life easier if the account was in USD also, no?

Also, I have chosen Alpari UK for a broker - again assuming that based in the UK it would be best to go with a broker based here. But, is that correct? Should I also consider US based brokers for example? What considerations are involved in such a decision?

Any advice much appreciated!

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Have a think about the implications of having an account in a different currency. How might it alter your risk.

virtuos0 said:

Have a think about the implications of having an account in a different currency. How might it alter your risk.

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True, if the USD strengthens against the GBP, my account would be worth less. I guess that's a strong argument for an account in GBP.

cherusker said:

True, if the USD strengthens against the GBP, my account would be worth less. I guess that's a strong argument for an account in GBP.

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Indeed

you should have in whatever currency you live in... if you put in another currency it's like you're in a "trade" of that pair. There's no need to toss one more variable for you to worry about.

salvadorveiga said:

you should have in whatever currency you live in... if you put in another currency it's like you're in a "trade" of that pair. There's no need to toss one more variable for you to worry about.

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Good way of putting it, thanks. I'm glad there's a clear point-of-view emerging here.

cherusker said:

Hi

Regarding a forex trading account, I'd like to know what the "best practice" is for choosing one's account currency.

I assumed, living in the UK, that I should choose GBP. But now I'm not so sure anymore.

So many calculations, for example for direct rate pip values, are based on the USD. WOuld certainly make life easier if the account was in USD also, no?

Also, I have chosen Alpari UK for a broker - again assuming that based in the UK it would be best to go with a broker based here. But, is that correct? Should I also consider US based brokers for example? What considerations are involved in such a decision?
Any advice much appreciated!

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Successful swing trading depends on spotting the trend at the right moment and riding the trend till its end. Experts assert that the best decisions and actions you could take when managing and handling your forex investments are still those you do based on your own analysis. It is best practice that you only use tools and resources to aid your own personal analysis of situations. Make your own hypothesis and rely on the decisions you make on your own.

Daniel Webb said:

Successful swing trading depends on spotting the trend at the right moment and riding the trend till its end.

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One of the best method i know is using Elliott Wave Theory...